TIDMDKL
RNS Number : 8681R
Dekel Agri-Vision PLC
10 November 2021
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
October Palm Oil Production Update and Cashew Project Update
Dekel Agri-Vision Plc (AIM: DKL) , the West African agriculture
company focused on building a portfolio of sustainable and
diversified projects, is pleased to provide an October production
update for its Ayenouan palm oil project in Côte d'Ivoire and an
update on the timing of the commencement of production of our large
scale cashew processing plant at Tiebissou, Côte d'Ivoire (the
'Cashew Project').
Key Highlight s
Palm Oil Production
-- 28.2% increase in October 2021 compared to October 2020
-- Local CPO prices continued to increase resulting in a 2021
monthly high of EUR960 in October 2021, a 50.9% increase on average
realised CPO prices compared to October 2020
Cashew Project
-- The commissioning of the Cashew project commenced in early
October as planned and whilst it is continuing to advance towards
first production, supply and final shipment challengers will lead
to a delay on the first production milestone which was expected in
mid-November. See details below.
Lincoln Moore, Dekel 's Executive Director , said: "A year of
strong production and even stronger prices continues to set Dekel
up for a record year of financial performance in our palm oil
operation in 2021. Given current prices remain materially higher
than we achieved in this year's high season earlier in the year we
remain optimistic of a further uplift in the financial performance
of the palm oil operation in 2022.
"The delay in commencing first cashew production due to supply
challengers impacting parts of the final shipment is frustrating.
However, a substantial amount of the commissioning phase has been
completed successfully and we are also supplementing locally
sourced components which should still see our first production
occur in December."
Oct-21 Oct-20 Change
FFB processed (tonnes) 11,603 9,350 24.1%
CPO production (tonnes) 2,331 1,818 28.2%
CPO Sales (tonnes) 2,301 1,843 24.9%
Average CPO price
per tonne EUR960 EUR 636 50.9%
PKO production (tonnes) 136 129 5.4%
PKO Sales (tonnes) 149 251 -40.6%
Average PKO price
per tonne EUR946 EUR 564 67.7%
PKC production (tonnes) 221 196 12.8%
PKC Sales (tonnes) 24 47 -48.9%
Average PKC price
per tonne EUR80 EUR 61 31.1%
Crude Palm Oil
-- Production and Sales: the recent trend of like for like
monthly CPO production continuing to be higher than last year
continued with a 28.2% increase in October 2021 compared to October
2020. This also led to a 24.9% increase in like for like CPO sales
for the month
-- Prices: CPO sales prices remained very strong at EUR960, our
highest monthly price achieved this year and 50.9 % higher than
prices achieved in October 2020
o Whilst international CPO prices continue to trade at
multi-year highs over EUR1,050 per tonne, we are seeing local
prices currently settling around EUR950 per tonne. We believe this
is in part due to macro logistics challengers to export and as a
result, we continue to supply at the factory gate which is
materially cheaper than export options
Palm Kernel Oil ('PKO') and Palm Kernel Cake ('PKC')
-- Sales: Lower sales quantities of both PKO and PKC reflect the
continued internal strategy to manage sales to maximise prices and
the profit margins of PKO and PKC. This strategy has worked well,
and we currently hold higher levels of stock than typical which we
expect will unwind before the next high season commences
-- Prices: 67.7% increase in PKO prices to EUR946 per tonne
compared to EUR565 in October 2020. Local PKO prices continue to
improve with October seeing our highest prices achieved to date
this year, albeit local prices still lag the international
price
Cashew Project
-- As outlined in our previous announcement dated 9 September,
we were anticipating the commencement of production in
mid-November.
-- The main issue has been the arrival of parts of the final
shipment due to global material sourcing issues.
-- As an alternative, we have been able to source short term
alternative components to avoid further delays
-- In terms of the commissioning process status:
o Electrical supply, the Compressor, Air and the Industrial
Water distribution network has been successfully commissioned
o Steam supply should be commissioned early next week.
o The Calibration section including the sorting process has
commenced and is now settling and should be commissioned this
week
-- This will be followed by the steaming and drying
commissioning and first production is currently scheduled in
December
-- We will keep the market informed of key milestones, including
first production, during and following the commissioning period
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
** ENDS **
For further information please visit the Company's website
www.dekelagrivision.com or contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Arden Partners Plc (Nomad and Joint Broker)
Paul Shackleton / Ruari McGirr /
Elliot Mustoe (Corporate Finance) +44 (0) 207 614 5900
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
Notes:
Dekel Agri-Vision Plc is a multi-project, multi-commodity
agriculture company focused on West Africa. It has a portfolio of
projects in Côte d'Ivoire at various stages of development: a fully
operational palm oil project in Ayenouan where fruit produced by
local smallholders is processed at the Company's 60,000tpa crude
palm oil mill; a cashew processing project in Tiebissou, which is
due to commence commissioning in December 2021.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDUKAURAUUARUA
(END) Dow Jones Newswires
November 10, 2021 02:00 ET (07:00 GMT)
Dekel Agri-Vision (AQSE:DKL.GB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Dekel Agri-Vision (AQSE:DKL.GB)
Historical Stock Chart
From Jul 2023 to Jul 2024